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Customer refunds

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A customer made an overpayment and I sent a refund check for the overage but it’s still showing as a credit on their account. How do I fix this?

QuickBooks Desktop

S

SarahannCAnswer

Let me help you fix the credit showing on your customer's account, Linda.

After issuing a refund check to your customer, it may still show as a credit because the refund has not affected the Accounts Receivable account. Let's open the check you created and ensure that it affects the Accounts Receivable.

Once done, link the credit and check using the Receive payment feature. Here's how:

Go to the Customers menu.
Select Receive Payments.
Under the Received from drop-down, select your customer.
In the Available Credits section, select the check you created and then Done.

This updates the customer's account to reflect the refund and remove the overpayment credit. Additionally, you can check this article for more details: Give money back or credit to your customers.

Feel free to reach out if you have any more questions about issuing a credit or refund to your customer in QuickBooks Desktop. I'm available to assist you whenever you need help.

S

SarahannCAnswer

Let me help you fix the credit showing on your customer's account, Linda.

After issuing a refund check to your customer, it may still show as a credit because the refund has not affected the Accounts Receivable account. Let's open the check you created and ensure that it affects the Accounts Receivable.

Once done, link the credit and check using the Receive payment feature. Here's how:

Go to the Customers menu.
Select Receive Payments.
Under the Received from drop-down, select your customer.
In the Available Credits section, select the check you created and then Done.

This updates the customer's account to reflect the refund and remove the overpayment credit. Additionally, you can check this article for more details: Give money back or credit to your customers.

Feel free to reach out if you have any more questions about issuing a credit or refund to your customer in QuickBooks Desktop. I'm available to assist you whenever you need help.

S

Shawnl2022

The client paid twice on one invoice. (with 2 payments). I created refund checks to the client. When

I followed your instructions to refund the client exactly as stated through received payments, pulled up the customer, toggled the amount, then apply credits- it cleared the credits on the AR aging however it created a deposit to be posted. How do I fix this? Should I void the checks that were written- then follow the process?

AldritchM

Hi there, Shawn.

Let me help you go over your checks and check why it cleared the credits on the AR aging however it created a deposit to be posted.

Let me show you how:

Go to your menu Banking then Write Checks.
Choose the appropriate bank account
Choose the appropriate check number and date.
Choose this same customer in the Pay To The Order Of field.
Fill in the amount of the overpayment you wish to refund.
Very important to choose Account Receivables in the expenses tab near the bottom of the screen.
Click Save & Close.

Note, if you get a warning that states "Please choose a customer when using an Accounts Receivable account as a line item" then choose this exact same customer in the field (within the same Expenses tab off towards the right) called Customer:Job if this field does not exist, then you may have to change a company preference setting.

Now, If you look at this customer's AR balance, this check refund should be reflected here, however, you still need to apply this check refund to the overpayment credit; otherwise, these two line items will always appear as open. To do this:

Highlight the customer in the customer list, then click on New Transaction (at the top of the customer list, not in the company menu list) and choose, Receive Payments.
Within the Receive Payment screen:
- Don't fill in a payment amount; instead, just highlight (not checkmark) the outstanding check payment amount as listed in the open invoices list, then click on Discounts & Credits listed as one of the button items towards the top.
- Find the Available Credit which is the overpayment amount and be sure it is check marked. click Done.

You will now notice there is a new column called Credits and thus the NET of the Amount Due + Credits is equal to zero.

I'm also adding some articles below to view various ways you can track customer transactions in QBDT. Then, how Accounts Payable is used to track the money you owe your vendors and how it works:

Do you have other questions about invoices and overpayments? Please let me know by leaving a reply. I am always around to help

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Kelly79

This is not working for me as the customer has already paid the invoice so there is no invoice. When I try to apply the credit at the bottom it will not allow me to check the box as there is no invoice for the customer.

I had a customer pay for an invoice twice on one check. I applied the entire amount to the invoice, which created a credit. I followed information in the knowledgebase and created a refund receipt and then printed a check back to the customer for the overage. The credit is still sitting in the customer's account. I have the original invoice, the overpayment (which says the dollar amount credit under Paid) and then a refund.

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